Emcure Q2 FY27 Revenue Up 24% YoY, Raises Guidance

Revenue from Operations: ₹2,820 crores, representing 24.3% year-on-year growth and 9.3% sequential growth
Geographical Breakdown:
India Business: ₹1,155 crores (12% YoY growth)
International Business: ₹1,665 crores (34.5% YoY growth), constituting 59% of total revenue
Europe & UK: ₹604 crores (36% YoY growth)
Canada: ₹431 crores (24% YoY growth)
Rest of World: ₹630 crores (41% YoY growth)
Gross Margin: 59.5%, improved by 110 basis points sequentially due to business and product mix
Employee Costs: ₹435 crores (13% increase YoY)
Other Expenses: ₹669 crores (20% increase YoY), primarily due to higher sales and R&D expenditure
R&D Investment: ₹111 crores (4% of revenue)
EBITDA (ex-other income): ₹575 crores (31% YoY growth)
EBITDA Margin: 20.4%, expanded by 100 basis points YoY and 70 basis points sequentially
Other Income: ₹16 crores (compared to ₹39 crores last year due to lower foreign exchange gains)
Depreciation & Amortization: ₹110 crores (in line with Q1)
Finance Cost: ₹36 crores (reflecting increased borrowings for acquisition-related payouts)
Profit Before Tax: ₹446 crores (31% YoY growth)
Effective Tax Rate: 27%
Profit After Tax: ₹325 crores (29% YoY growth)
PAT Margin: 11.5% (45 basis point improvement YoY)

India Business:

Achieved 12% YoY growth to ₹1,155 crores
Second consecutive quarter of double-digit growth (improved from 10% in Q1)
Organic growth was 10% versus 6% in Q1
Primary growth drivers: Women's health, cardiometabolic, and CNS portfolios
Zuventus performance improved sequentially with key brands showing good traction
Consumer Health business gaining traction with brands Bitter Drops and Galact
Focus on making big brands bigger, improving field force productivity, and building scale in chronic and specialty therapies

International Business:

Europe growth driven by strong performance across UK and Continental Europe, led by base portfolio, new launches, and scale-up of liposomal amphotericin B
Canada growth driven by base business and recent launches, with further launches expected in second half
Rest of World growth accelerated by ARV business strength and non-ARV expansion through new launches in Latin America, CIS, Asia, and Africa

Board approved amalgamation of Zuventus Healthcare and Emcutix Biopharmaceuticals (wholly-owned subsidiaries) into Emcure on October 12, 2026
Part of "One Emcure" vision to simplify group holding structure
Subject to necessary approvals including NCLT
Zuventus brand and teams remain integral part of India business
Expected synergies in back-end operations and corporate functions

Received over 20 product approvals during the quarter
Key approvals: liposomal amphotericin B in Brazil and Mexico; bevacizumab for wet AMD in India
Positive recommendation from India's Subject Expert Committee for lenacapavir injection for PrEP indication
Filed dossier with WHO and US FDA for lenacapavir
R&D investments to step up in second half as per plan

Net Debt (as of September 2026): ₹1,317 crores (increase of ₹263 crores over March 2026)
Acquisition-related payouts of ₹551 crores in first half, including:
Final payout for Canada acquisition
Acquisition of minority stake in Genova
Payment towards UK product portfolio
Company remains committed to becoming net cash by end of FY28

Revenue Growth: Revised upward to exceed 20% for FY27 (from previous mid-teens guidance)
EBITDA Margin Improvement: Expected at upper end of guidance range of 75-100 basis points
Momentum expected to continue in second half across all geographies
Confidence in achieving 5-year goals and creating long-term value

Domestic business expected to accelerate in second half with growth in line or slightly above industry
International business, particularly ROW and Europe, scaling up better than expected
ARV business showing strong order book for second half
Expect to be at or above industry growth rate by exit of FY27
Profitability hierarchy: India remains most profitable, followed by Europe and Canada (international businesses); ARV segment has lower margin profile
Lenacapavir expected to be margin accretive to ARV portfolio in medium term
No significant product concentration in international business

MR count remains at approximately 4,100-4,200 with no near-term additions planned
In-licensed products contribute high teens to India sales
Biosimilars contribute approximately 10% to India sales, lower internationally
ARV contribution to Rest of World business approximately 50% in Q2 (down from 67% in Q1)
Expected ARV contribution of 50-55% for FY27

Liposomal amphotericin B: Key growth driver in Europe, penetrated approximately 50% of European markets (20 countries remaining)
Treprostinil: Expected to contribute significantly in Europe as attractive margin product
Poviztra (obesity treatment): Gaining traction, ranked number 4 brand in IQVIA, expected to improve ranking
Semaglutide: Supplies expected for Quebec partner Dr. Reddy's in November 2026; filing planned in Canada in coming months

IPM growth picking up due to increased healthcare access, demand for quality branded generics, and GLP-1 category driving additional diagnostics
Obesity market contributing significantly to overall market growth
Some impact from imported raw material cost increases, freight costs, and insurance costs, partially offset by favorable currency impact